In “Russia’s Rapidly Evolving Commercial Bankruptcy Law,” Squire, Sanders & Dempsey L.L.P. lawyers Sergey A. Treshchev and Patrick J. Brooks discuss the bankruptcy and restructuring process in Russia, the debtor’s claims register, the ranking of creditor claims by priority and how proposed amendments to Russia’s bankruptcy law could affect out-of-court arrangements, financial rehabilitation, cramdowns and cross-border insolvency procedures.
Numerous steps have been taken in Russia in the last year to better balance the interests of debtors and creditors, provide tools to combat abuse of the insolvency system, make the process more transparent and increase disclosure. As Mr. Treshchev and Mr. Brooks explain, creditors have a strong incentive to aggressively pursue legal action against distressed businesses and even initiate involuntary bankruptcy proceedings.
The article appeared in Financier Worldwide’s Bankruptcy & Corporate Restructuring 2009 Ebook and is reproduced with the permission of the publisher.